My portfolio

[nash031]

Yes, I trust CNN, the New York Times, the Washington Post, the Wall Street Journal (on financial matters only), etc. over something said on Bogleheads or Vanguard about their own funds.

To each their own. Those news outlets are looking to sell advertising, too.

I think I try to sell high and buy low more than anyone on this forum. If the market is dropping at a certain rate, yes, I'll start thinking "it will probably keep going for a while" but I wouldn't be sure what to do. I'd really like some solid information on that. What rate and extent of dropping indicates it will keep going and that you should sell? I think if I asked I'd just get a lot of cop outs and stories about people selling when they should have waited for it to bounce back up. I don't believe that's always the right thing to do but I won't claim to know exactly when it is.

Don't you think that if there was a good answer to your question, literally everyone would know it and act on it? Call it a cop out if you want, but there are a lot of smart people here, many of whom are millionaires several times over from frugality and intelligent investing, who are telling you you're better served not worrying about it.

I have over $6,000 in savings, which is almost 6 months expenses, plus $8000 cash in a brokerage account (it was $20,000 until yesterday). I think that's too much by most people's standards. I'm still working on what to do with the $8000.

I have more than double that amount. It makes up less than 1% of my overall portfolio, so no, I don't consider that "too much cash". In fact, I'm purposefully sitting on it for the next the the broad market presents an opportunity to buy. I'm not putting extra money into this market right now. I believe it is overvalued. Point is, talking in absolutes makes little sense. I have no idea how much $8000 represents for you, but for me it would not be nearly "too much cash".

 

[Boho]

there are a lot of smart people here, many of whom are millionaires several times over from frugality and intelligent investing, who are telling you you're better served not worrying about it.

The millionaire indexers here probably had exceptionally good income from their jobs.

In fact, I'm purposefully sitting on it for the next the the broad market presents an opportunity to buy. I'm not putting extra money into this market right now. I believe it is overvalued.

Everyone has thought the market was overvalued for a long time. I'm waiting too but I thought that was frowned upon here. Fund managers need cash, but I've heard various things about investors needing cash (aside from savings and checking). As many people say to stay invested as say to wait for a dip. Some say waiting for a dip isn't market timing and some say it is.

I'm waiting for either a broad market drop or a little market stabilization and for a particular fund to "randomly" drop in price consistently with its historic pattern, then I'll buy. I read more of A Random Walk Down Wall Street, 2015 edition (the paper and print is so bad that I wouldn't take it seriously if I didn't know it was a respected book), and on page 138 it shows a graph of a coin toss pattern. It's intended to show that the randomness of a coin toss produces a seemingly cyclical pattern, but the graph only shows like two peaks. That doesn't bother me because I look for a much longer term pattern before I decide that a fund is at a low point.

I think the book's chart shows about 100 coin tosses (I don't think it gives the number but I did a rough count from the graph). Here's a better chart made from 150 tosses. It doesn't provide a pattern I'd be comfortable with if I was looking to time a fund.

Coin Tosses and Stock Price Charts | TVMCalcs.com

 

[getwilde]

The Little Book of Common Sense Investing (by John C Bogle) completely changed how I view the market. In fact, I fired my financial advisor of 10+ yrs the day after I completed it.

I'm too new here to know how this community regards Bogle's advice, but I hear echoes in the posts about the importance of low fee funds.

It's an easy read and very informative. Highly recommended.

The millionaire indexers here probably had exceptionally good income from their jobs.

The Millionaire Next Door is a fascinating book which challenges this notion. Its authors interviewed hundreds (?) of millionaires around the US and discovered that wealth (ie net worth) has little correlation to income.

 

[RobLJ]

MTRAX has a 5.5% FE load and a .25% 12B1 fee. Who is your advisor?

My Fidelity brokerage 403b offers many load funds load and transaction fee waived. This is one--I do own several that I would not own were not the load waived.

It's worth a thought, Boho, if you are investing in load funds.

 

[Boho]

My Fidelity brokerage 403b offers many load funds load and transaction fee waived. This is one--I do own several that I would not own were not the load waived.

It's worth a thought, Boho, if you are investing in load funds.

Yeah, I noticed that and mentioned it a few posts later. I initially just looked at the "costs" rating and saw it was good and didn't look into loads. Turns out it was good. I even bought more MTRAX. I like bond/stock/us/foreign mixes because I feel like it's less limiting for the manager. I don't mind a pro deciding how to balance things. I figure a mixed fund will be "somewhat" balanced and that's good enough for me.

 

[nun]

Yeah, I bought a bond fund a couple of days ago. I think it was my only fund that gained yesterday.

Why would you want to know how your funds perform with 24 hour resolution. This has all the indicators of a train wreck.

 

[Boho]

Why would you want to know how your funds perform with 24 hour resolution.

Why not?

I was criticized for buying by someone who didn't even know how the fund performed or what fund it is, just because the market is up, and that's OK?

 

[UnrealizedPotential]

Boho, why did you post your portfolio if you don't want advice? I like my portfolio, but I don't feel the need to post it as I am not looking for advice or feedback.

 

[OverThinkMuch]

... (the paper and print is so bad that I wouldn't take it seriously if I didn't know it was a respected book)...

So between a nice glossy investment brochure and an investment book in its 15th edition, you might make a judgement based on the "paper and print"?
I think your money is just waiting to be taken.

While you pursue this idea, track it against the S&P 500 index. See for yourself.

 

[Boho]

So between a nice glossy investment brochure and an investment book in its 15th edition, you might make a judgement based on the "paper and print"?

No, a brochure gets points deducted for not being a book.

I don't even see where it says 15th edition. I wanted a book required by colleges and I read that this one was but I'd have chosen another one based on a pathetic and misleading graph and lack of references if not for the poor paper quality and print.

 

[samclem]

A book that remains unread or not understood is exactly as valuable as a brochure that is unread or not understood. " A Bogleheads Guide to Investing" is an easy read, has good typesetting, invaluable insight. But a person has to commit a few days to it. It isn't in color. Just like "A Random Walk".